Legal Definitions - Old-Age and Survivors' Insurance

Old-Age and Survivors' Insurance (OASI) was the original name for the federal program established by the Social Security Act of 1935.

It provided retirement benefits for eligible individuals and payments to their survivors upon death, forming the foundation of what is now commonly known as Social Security.

Old-Age and Survivors' Insurance (OASI) refers to the original federal insurance program established in the United States to provide financial support to its citizens. This system, primarily funded through payroll taxes, was designed to offer regular income to individuals once they reached retirement age and to provide financial assistance to their eligible family members (survivors) after their death. OASI was the foundational component of what is now broadly known as Social Security, with its scope later expanding to include disability and health benefits.

Here are some examples illustrating Old-Age and Survivors' Insurance:

• Retirement Benefits: After working for 45 years as a teacher, Maria decided to retire at age 68. Throughout her career, a portion of her earnings was deducted as payroll taxes, contributing to the OASI system. Upon retirement, Maria began receiving monthly payments from the government, providing a steady income stream that supplemented her savings and allowed her to maintain her lifestyle.

  This example demonstrates the "Old-Age" component of OASI, where individuals who have contributed to the system during their working lives receive regular financial benefits upon reaching retirement age.

• Spousal Survivor Benefits: John, a factory worker, passed away unexpectedly at age 58, having contributed to the OASI system for over 35 years. His wife, Susan, who had primarily worked part-time and had a lower earnings record, became eligible to receive monthly survivor benefits based on John's more substantial work history and contributions. These payments helped Susan cover her living expenses and maintain financial stability after her husband's death.

  This illustrates the "Survivors' Insurance" aspect, specifically how a surviving spouse can receive financial support based on the deceased worker's contributions to the federal program.

• Children's Survivor Benefits: Sarah, a single mother, consistently paid Social Security taxes throughout her career as a nurse. Tragically, she died in an accident, leaving behind her two young children, ages 10 and 14. Because Sarah had contributed sufficiently to the OASI system, her children became eligible to receive monthly survivor benefits until they reached adulthood, providing crucial financial assistance for their care and education.

  This example further highlights the "Survivors' Insurance" component, showing how dependent children can receive financial aid from the system after the death of an insured parent, ensuring some continued support.